Termination under JCT Design and Build

There are 6 prescribed grounds under clause 8.11 by which either party can suspend performance of the contract. These grounds are as follows:

• force majeure frees both parties from liability where an extraordinary event or circumstance beyond either parties control occurs;
• the employer issues instructions regarding discrepancies in the contract documents (clause 2.13), the instruction requires a change (clause 3.9) or postponement of work as a result of the negligence of a statutory undertaker (clause 3.10);
• loss or damage to the works occasioned by any of the specified perils (clause 6.8) such as fire, lightning, an explosion, a storm or flood, unless the loss was due the parties own negligence or default;
• civil commotion or terrorist activity or the action of authorities dealing with terrorism;
• the UK Government exercising statutory powers that directly affect the execution of the works; or
• delay in receipt of any permission or approval for the purpose of development control requirements, the delay is one which the contractor has taken all reasonable steps to avoid or reduce.

The existence of one of these grounds will trigger a period of suspension. The length of this period is stated in the contract particulars. The default period is 2 months if no alternative is provided.

Following the expiry of the period of suspension either party may give a notice in writing to the other that, unless the suspension ceases within 7 days after the date of receipt of the notice he or she may terminate the contract by way of a further notice.